credit suisse ceo brady dugan stands firm as the swiss bank settles a huge u.s. tax firm. they pleaded guilty to criminal charges and are paying a $2.5 billion fine. vodafone stock under pressure. the firm warns investors earnings will drop as it spends more cash on its networks. an angrier reaction from the chinese government to the spying

probe. they say the u.s. should cancel the charges. thailand's army declares marshall law but stops short of a full-blown coup in a six-month crisis that has paralyzed the government. you're watching "worldwide exchange," bringing you business news from around the globe. resignation has never been a consideration. that's the statements from a defiant brady dugan after credit suisse has been fined $2.5 billion after pleading guilty to help u.s. citizens evade taxes. it's the biggest bank to admit to a criminal charge in more than two decades. eric holder says the activity has been pervasive. >> it helped account holders by concealing assets.

these secret offshore accounts were held in the names of entities and foundations. and this conspiracy spanned decades. in the case of at least one wholly owned subsidiary, the practice of use iing using this more than a century ago. >> he was named ceo back in 2007. he didn't oversee most of the wrong doing that occurred much earlier. as of 2007, 2008, credit suisse exited the offshore u.s. banking. no heads will roll. that's what it means like at first glass. ceo brady dugan saying that he didn't ponder stepping down and he's very much committed to the swiss bank. i listened into that conference call. a couple interesting questions from analysts. they're concerned about two things really, first of all

about capital. are there capital levels, which are pretty low, by industry standard are they enough to buffer this? they're at 9.3% and credit suisse says we'll be selling more real estate. no problem getting back above that 10% level after which we'll be paying out a nice dividend, a cash dividend. what does it mean in terms of the reputational impact and interesting comments from the ceo or the cfo rather, he says there's been no material impact on the business from the heightened media coverage and more importantly, they expect no impact on their banking licenses. whether it's in the uk, u.s. or in switzerland. for them, they're hoping after this, once they get the legacy issues out of way, it will be business as usual. >> that ill with be nice. >> that would be nice for a change. >> that's unusual for a bank anymore. >> you're absolutely right. the ceo said on the call,

there's been an inflationary rise in the cost of settlements. so the doj, five years ago when they fined ubs that was a third of the fine. but also in part because ubs was willing to hand over client names. credit suisse didn't want to do that. that's why u.s. regulators perceived them as being less cooperative. the doj does not want to appear as being lenient on banks in general. the fines are definitely rising. >> it's interesting, when do you -- at what point in any cycle of any investigation do you say we'll work with you or not. they went early, barclays and it didn't work. >> maybe it pays to good early. >> in that case it didn't, you see. bob diamond stepped down and nobody else did. difficult thing. plenty more to come on that.

our colleagues stateside speak to chris flowers. they'll talk about the u.s. mortgage market, european bank stress test and his outlook for japan, 7:00 a.m. eastern, 12:00 if you're watching in london. besides all of that, plenty of other stuff on today's show. go pro is set for an ipo. could the daredevil's preferred camera of choice bring an adrenaline rush for investors? we'll be in new york later when microsoft is rumored to be unveiling its brand new surface model. we'll find out the gossip ahead of their big event. world cup or world flop. brazil may have finished the sao paulo stadium but what could this mean for the country and investors. and finally, are nigeria's security issues holding the country back? this as the latest interest rate

decision is announced. here we are, one hour and five minutes into today's trading session. we had a slight close higher for u.s. equities last night. we did see buying back of the momentum and biotech stocks and european stocks at the moment are around about 5-4 in terms of advancers beating decliners at the moment. the ftse yesterday was down some 11 points, down 20 this morning off a third of a percent. the xetra dax and cac current are fairly flat. ftse mib is up 0.75%. vodafone, the shares -- two stocks, vodafone currently down 3.7%. we're seeing what the company looks like without the benefit of a big chnk income from verizon. they're saying core earnings will fall because of the investment costs it needs to make to support the business. it's about where is future growth going to come from. the world's second biggest

mobile operator had a 1.9% full-year revenue. the stock here we're focusing on, marks and spencer, currently off 2.5% at the moment. struggling. the retailer posting its third straight profit decline, although 3.6 drop was better than expected. the food business once again, the star performer in the group with total sales up 4.2% on the year. let's recap theationen markets for you as well today. moving on, the nikkei, up 0.5%. this is despite the fact we saw the yen at a 3.5-month high against the u.s. dollar. it's threatening 200 moving day average. u.s. yields still low, of course, and less chance of bank of japan action and that's just supporting the yen. the nikkei shrugging that off. the hang seng up 0.5%. we're flat in mumbai.

the s&p/ask up 0.2%. we have down to 2.47%, a three-month low for yields last week. sorry, a ten-month low. 2.5% was the yield yesterday. we rose a little bit on that. today we'll be looking at chain store sales, fed minutes coming out again tomorrow. what is interesting is perifial yields. we got pushed lower, so people now wondering whether the spread compression is over. that move has started to turn. there will be expectations of ecb action coming up later. let's show you where we stand on currency markets as well. euro dollar at the moment.

1.3686. not too far from the two-month low. the dollar/yen, 101.34 is where we stand at the moment. that's got some focus. we keep our eyes as well on sterling. coming up, we have the latest inflation number in around 20 minutes time. currently at 1.6843. that was the five-year high. people think 1.70 is very much the height of the current range. that's where we stand right now as far as currency markets are concerned. let's turn our attention to what's going on in asia. thailand's army has declared martial law. they say it's to keep the peace and is not a coup.

sri jegarajah has filed this report. >> reporter: we are seeing a negative knee jerk reaction on thai equities, also on the thai bart after the military declared martial law, although they did go to great pains to stress that there is no coup. in fact, the caretaker government is still functioning and it is still working. that seems to be the case. many are describing this as a slow motion coup. they believe that this is going to be a first step towards a fully fledged military takeover. but in the here and now, there's a sense of calm in bangkok. the stock market is functioning properly. there are some in the capital and in the investment community who do believe this is a positive development. that the military should mediate in the political crisis and help break the deadlock between the two parties. effectively put them in a room, throw away the key and get them to sort out their problems, come

out with a resolution. the ratings agency says this is a positive development, they said it could help in terms of developing a breakthrough in the thai political crisis but there is still room and risk for the blood shed and further political violence. the military's vomit should help mitigate that to a certain degree. their role in terms of brokering and acting as a mediator towards the transitional government will be key and that's going to be the next step. back to you now. >> that was sri with the latest on the reaction in thailand. still to come, as vodafone said investment costs will hurt 2015 earnings, we'll have analysts perspective. ♪

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this is where we bring together reliably fast internet and the best in entertainment. we call it the x1 entertainment operating system. it looks like the future! we must have encountered a temporal vortex. further analytics are necessary. beam us up. ♪ that's my phone. hey. [ female announcer ] the x1 entertainment operating system. only from xfinity. tv and internet together like never before. you're watching "worldwide exchange." we heard just before the break, the thai army has declared martial law. though they say this is not a coup. paul chambers is joining us, analyst from the university. is this a coup or not. >> this is a halfway coup.

it is a legal operation under the martial law act of 1914 which enables the army commander to take power and assume responsibilities for the stability of the country. but he's done so without the formal consent of the prime minister. so it is a coup of sorts but it's legally acceptable to do what he did. okay? he did not establish an exact coup like in 2006. when a coup did occur in thailand. the general is using a decree that is part of ty law -- thai law in the country for all intents and purposes. >> on the legal side, paul, you

just said you needed the permission of the acting prime minister which he clearly doesn't have. wouldn't that then, therefore, make it illegal? >> well, the interesting point of this is that in the 1914 martial law act was a law that came about under the absolute monarchy before there was democracy. so at that time, you could decree a martial law without the consent of any prime minister that might have existed. under this act, which is hardly ever used, and certainly not for the entire country, the army commander has said, look, i need to do this for the benefit of the country and i am the army commander under the king. >> fair enough. >> not under the prime minister. >> so you mentioned an interesting point, the benefit of the country. do you think this is for the benefit of the country? you believe actually this is a way of getting the two sides to

get together and get us to some democratic elections? is this the right step? does this hurt or hinder that process? >> i do not think this is a good step for democracy at all. i think -- i mean, i have to foresee some things that might be occurring. i think this is a step in the direction that's helping the arch royalists. okay? i don't think this is a step in the direction that's going to help thaksin, yingluck or the party in power today, that was elected in 2011. i think the army commander, i think he's acting in the interest of the arch royalists but he is using this tool, this martial law act, to try to make it legal, to try to make it look legal. what is it? it is basically a grab of political power by the army.

but he can say, look, it is legal because i need to restore order and stability. but it's not a coup. he can -- you see what i'm saying? its sm it's semantics. >> it may look like one and smell like one but it isn't one. thank you. paul chambers from changmai university. a couple of big earnings out of the uk today. marks & spencer posted aful-year decline for the full year. total sales up 2.4% on the year in the food division. helia brahimi is here with us. >> he's been 2.3 billion pounds of heavy lifting.

this is the country's biggest producer. it's an institution in the uk. m & s is 130 years old. it's official. it's been taken over in terms of profits. earlier this year it posted 695 million pounds of profits for for the third year in a row we've seen declines in profits. 623 million pounds for the year. half of the sales come from general merchandise which is the area that m&s has been struggling in, fashion, basically. they haven't got it right. they haven't got the trends right to appeal to a broad range of customers and they haven't got delivery right. they're talking about today teething problems with the website, huge problems there. and, again, they are really playing catch up to next who has both managed to get the trends

right and most importantly, was very early on winner in terms of online. >> that's because they had the -- i forgot what you call it. they had the postal ordered service. >> yes. click and click. >> what did you call it? before the internet ever -- >> the catalog system. >> catalogs. >> yes, yes. >> they migrated that online. it was useful to them. >> m&s used to post profits of 1 billion pounds. that seems a long time ago. it has had a spate of very good press in the glossies in the fashion mags. belinda earl who was parachuted in last year. >> leading lady. >> yes, the leading lady campaign. expensive campaign. but it is a winner with fashion journalists. whether this trickles down into

quantifiable numbers in the next three years, we don't know. this three-year ou program, that has really struggled. one of their biggest problems, real est print is not so easy to change. >> no. helia, thank you. we'll come back to you and some other things. vodafone, it says its core earnings will fall next year because of higher investment costs. the world's second biggest mobile operator came in just above expectations. we get to see what vodafone is like without verizon. so what do you think? >> actually, in the result of sales they were pretty much in line with where we expect. we now know they have challenges in europe but are doing well in their emerging market properties. it's a tale of two different stories, you could at digital media. the target is to increase the

revenue from digital media from roughly 40% to at least 50% at a time they were in negotiations with facebook. according to a source close to the negotiations, the french group signed a marketing deal worth about $500 million. the deal will be first managed by publicis in the united states before being rolled out in the rest of the world. the partnership will be focused on video advertising on facebook as well as messages on instagram. it will get access to the user data of facebook to estimate the advertising performance and the potential on the social network, both publicis and facebook declined to comment. obviously for the shareholders it will be good news. not lenly becau not only because of the value but in terms of media. that will be a speculation after

the failure of the deal announced two weeks ago. a russian billionaire has been ordered to pay his ex-wife $4.5 billion to settle a six-year divorce ruling. the ruling was passed by a swiss court. he will lose half of his wealth. he's known as the fertilizer king. he's currently the owner of the football team monaco. he's ranked the 78th richest person in the world by lloyds. tensions ramp up between the world's two biggest economies. we are going to be in beijing after the break. [ female announcer ] there's a gap out there. that's keeping you from the healthcare you deserve. at humana, we believe if healthcare changes,

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you're watching "worldwide exchange," bringing you business news from around the globe. headlines from around the globe. resignations not on the agenda. credit suisse ceo brady dugan stands firm. they plead guilty to criminal charges and pay a $2.5 billion phone. investors hanging up on vodafone without verizon.

they forecast earnings will drop as it spends more cash on its networks. the defense ministry says the u.s. should cancel the charges. plus, thailand's army declares martial law but stops short of a full-blown coup in a six-month long crisis that has paralyzed the government. we're just waiting for the la latest print of uk inflation stats. sterling/dollar is spiking higher on the back of that. have you got it, helia? >> no, i'm speculating. >> rising more than expected, 1.8% is what we've got from cpi. so there we go. the downward march has come to a halt this morning. >> the squeeze on wages is

tightening again. >> yes, indeed. the last print of average earnings. it didn't even climb over, did it, the previous number. that's why sterling has 1.6847 on the back of that as well. i just want to say if we have the ppi number as well. i don't necessarily have at this particular moment. the core ppi flat on the month, 1% on the year. let's get some more reaction to that. james ashley. beside besides helia, james ashley is with us. a tick higher, james. is the long march down in the uk number over? >> yes, i think that's probably fair. i think we're back into a territory where i would expect inflation to stabilize. i think last month was the low. from here, i'd expect inflation to be around about 1.8%, 1.9% for the foreseeable future. i think that's what the bank of

england is expecting as well. from their perspective, this isn't material news. and from here on, they're expecting inflation in that close range of just below 2% for the remainder of the forecast horizon. >> what at the moment are your thoughts on -- i'll come to house prices in just a second. your thoughts on base rates at the moment, when they actually move? >> i know we'll talk about house prices in a second. i think the two are closely related. the concern is about an imbalance in the housing market. there's a risk that the fpc might take action on intervention there. the housing bubble or momentum shall we say will cause an interest rate rise in the action from the mpc. i don't think that's the case at all. i think the economy is performing quite strongly. there are underlying structural fragilities. interest rates are being a long

way from being tightened off. our forecast remains november of next year for the first rate hike. >> the price index for march down 0.5%. now, the rate is up a percent. it has dipped slightly. >> that could be the mmr. >> that was in march. when did it come in. >> end of april, april 30th. >> these are march houses. it hasn't impacted it. the point is, i'm wondering whether helia might be right about that, whether the mmr will have an impact and, you know, on its own without having to do an awful lot more with fpc. >> i think that may well have impact. i do feel that the fpc, the news is it's making it very much consistent with imminent reaction. and the general record that we've been seeing over the past few quarters. they're all pointing in direction of greater concern about the housing market.

what form any fpc action takes is somewhat uncertain, whether it's just a recommendation to the government to pear this back. i think we are heading towards that. >> does that mean you have interest rate hikes for home buyers through the back door? >> i think you have effectively targeted tightening. yes, you can represent in those terms if you'd like. i think the idea is there is a growing imbalance within one part of the economy. on this occasion it happens to be the housing market. but the economy as a whole is not able to withstand rate tightening. that would be inappropriate. yes, if you like. you do have targeted tightening. this is equivalent in many respects to rate hikes, yes. >> consumers will be feeling basically mortgage rates are more expensive from their perspective. if it's more expensive for the

banks, it will be more expensive for the consumers. >> yes, but if we put it in governor king's terms, it is the job of the central bank to take the pinch ball away as the party gets started. i think there are signs that the party in the housing market is getting a little bit out of control. it's better to have them act rather than not acting. >> you're talking about the punch bowl. we had comments from the prime minister this morning, david cameron, about help to buy. how significant has help to buy been and has it really distorted the housing market in the uk and the way people are speculating? >> unfortunately, we can't say specifically that the housing renaissance is because of help to buy. certainly all the evidence we can see points in the direction of it being one of several contributing factors to the housing market improving. >> whether it's actually

materially had an impact, it may have helped confidence along. >> absolutely. >> maybe it helped that way. thanks for joining us. >> thank you. >> helia, thank you, good to see you. european equities have been softer going through the session. ftse off 0.3%. the ftse mib up a third. on the bond markets, yields are flat. ten-year gilt yields, 2.6%. post that to inflation number. treasury yields moving off their two-month low. 2.5% yesterday. on the currency markets, the move up in sterling/dollar, up to 1.6834. dollar/yen, 101. 32. the chinese government reacted angrily after the u.s. indicted

and named five chinese military offers for cyberspying. the chinese defense ministry says the government and mill i have have never engaged on spying on businesses saying the accusations have seriously damaged trust between the two countries. the state media reports that the u.s. ambassador to china was summoned and warned that retaliatory action would i taken. eunice is in beijing. eunice, good to see you. it's very difficult with these stories because there's always a line that each government has to put out. one wonders whether that actually means anything in terms of the official relationship or the unofficial relationship being damaged. >> right. i think it's difficult to say, just because as you well know, these two countries are economic partners and so going forward, they will want to continue to cooperate on several different issues and try to move past this at some point.

but at the same time, of course we know the nature of this relationship has been changing where we are seeing the u.s. and china over decades i'm talking about, becoming more and more competitors in several different issues. that's really what is at the heart of these accusations and one of the reasons why so many people are looking at it so closely. the u.s. justice department identified five chinese military officers and what was interesting about it was it was so specific in nature, we've heard these accusations of cyberspying in the past. but in this case, the officers' names, aliases, photos of these people were out in the indictment as well as exactly what they were allegedly doing and who the targets were in terms of american companies. there was one u.s. unit of a german company as well and what this indictment did was really detail how these companies were damaged whereby some of these designs allegedly were taken

from these companies and then given to chinese competitors so that these chinese competitors could have a disadvantage. in terms of the chinese reaction, of course, it has been very, very strong. very critical coming from various departments within the government. the foreign ministry has come out and said these charges are fabricated. the defense ministry has come out saying this is going to damage the military-to-military relationship and the internet office has made a strong statement saying that the u.s. is just a thief calling others a thief. in other words, they are saying that the u.s. is a hypocrite on these issues. ross? >> yes. we'll see where that goes. meanwhile, we know the u.s. is interested in china's ongoing relationship with russia and president putin is in shanghai. he's going to try to close the 38 gas deal today, eunice. how do you see this one developing? >> i think that it's probably --

we're probably going to see them reaching a deal on this contract, at least that's the expectation at this point. president putin is in hangry. he's already met with the president of china and the two have made a joint statement about ukraine as well as about some of their economic issues such as the luwann and ruble. with the gas deal it's seen as a symbol of the warming ties of these two countries. you have two big powers who you could argue are being isolated in the spheres where they have the most impact. in other words, i'm trying to say that russia is being isolated in the west. and then you have china increasingly alienating itself from its neighbors. it has a cyberspying issue with the united states. they have motivated to move past their historic mistrust and work out some of the details they've

been trying to negotiate over the past decade on this deal. now, the main sticking point has been over price. and we heard now from the russian spokesperson who has said that even though they still have not actually come together with the price, they said substantial progress has been made and the visit hasn't yet ended. there's a lot of expectation that eventually this deal will go through. in term of the details of it, 30-year deal where russia would be pumping 38 billion cubic meters of natural gas to china over a pipeline. that would be part of the construction, part of the deal. and that would be about one-fifth, equivalent of one-fifth of what china consumes already in terms of natural gas. this would allow russia to have a more diversified export market. it wouldn't have to rely so much on europe and at the same time it would be able to fuel china's

need for more energy. ross? >> always good to see you. thanks for that. that's the latest out of beijing with cnbc's eunice yoon. on the agenda in asia tomorrow, the bank of japan wraps up its two-day meeting. we'll continue to attract developments out of thailand has well. we'll follow developments in india as the newly elected bjp starts to set up the government. indian markets continuing to rise in anticipation of the promised economic reform. meanwhile, still to come today, nigeria has all the signs of an economy worth investing in. are companies being put off by deteriorating security situation?

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you're watching "worldwide exchange." almost month, nigeria rebased it's gdp. those headlines were soon overtaken by news that radical islamist group boko haram had kidnapped dozens of girls. this week, a blast believed to be targeting christians killed four people. in the northern region of nigeria, it was already a no-go

area for many companies. although many fear the frequent attacks could spread south. anna rosenburg joins us now. how much is the latest deterioration in security of putting investors? you invest in nigeria, there's a certain amount you accept. >> i think that investments are scared right now when they look at the media headlines. overall, nigeria faced volatility in the past. it's nothing that is really new. it's much more prominent now in the media. i think because nigeria is such a large economy. the investors that are in the country are aware of the security challenges and they know how to deal with them. especially because the terrorist attacks that are taking place are specifically focusing on the northern and the central areas of the country.

the nigerian government and its security forces have problems in dealing with this. >> yes. absolutely. they do. and it's definitely spiraling out of control in affected areas. when we look at nigeria in the past, we have elections coming up next year, volatility is always increased. the nature of the volatility has changed but it has always increased. right now it is getting worse but i think it is not affecting the areas where businesses are currently operating in. >> you say boko haram is labeled a radical islamist group. it echos, again, it's predicated on the fact that there is economic poverty to which they can feed upon. >> absolutely. the label is, as you say, islamist radical group but the grievances are much more radical in nature. although nigeria's economy has been booming is hasn't produced

more jobs. the northern area, poverty levels are extremely high. 70% of the population still live underneath the poverty line. that's where boko haram is getting recruit mement ground there. they see the south booming. >> the gap is widening as well. there's a sense of corruption and government inefficiency. and the fact that they are doing an awful lot better than they are. this should be a country that should be able to spread the economic wealth. >> absolutely. there's certain satisfaction with the government. there's a lot of dissatisfaction regarding the political divide between north and south. underlying it is a sense of economic grievance that is in the country at the moment. and boko haram is trying to make the calls. we think this is going to even out a little bit after the elections as the situation

stabilizes a little bit and the government gets a little better in dealing with it. right now, it certainly is a cause for concern. >> always good to see you. >> thanks very much. >> anna rosenburg, frontier strategy group. if you have comments or thoughts, don't forget about anything we discussed today, e-mail us, the address is down there, worldwide@cnbc.com. later, we'll be talking about the latest tech moves of the surface tablet coming out of microsoft. don't miss out on that. right now we'll focus in on brazil. football fans may be counting down to the world cup. it's a month away. serious questions are being raised about the country's readiness to handle the world cup. with continued complaints of corruption and high cost, public frustration is simmering.

what does it mean for investors? joining us is michael henderson, senior analyst. thanks for coming in, michael. how important is the world cup, period, to brazil and its projection to the rest of the world and investors and its own economy? >> i hate to disappoint but the actual economic impact will be relatively small. if you want to talk about gdp growth, we're talking about a few tenths of a percentage boyne of gdp growth. you'll see an increase in tourist revenues, higher consumer spending. >> is there a confidence factor here? if they have a good tournament, is there a spinoff one economically from how the tournament is perceived? if there's lots of protests, it may put off investment. >> it may be. it will certainly raise the profile. if they have a good tournament, people will be looking at brazil with a fresh pair of eyes.

more than anything, this extreme spending that we've seen won't do anything to boost the country's long-term potential. these stadiums won't be particularly useful in the long run. >> would you say stadiums aren't productive assets? >> no, they're not. usually a lot of these times we've seen in the past 20 years, they turn into white elephants which are no longer used. they can even be a burden on the public finances. >> don't tell west ham that. is that the way to do it, get someone to take it over? >> if it's done properly. a lot of the time these things aren't. >> the world cup becomes a platform. we've had these protests in the last week. >> yes, i think to fully understand, you have to look back to last year where we had this big uprising, hundreds of thousands of people coming into the street, these grievances were about corruption, wasteful

public spending, things like that, which haven't gone away. i think there is a simmering undercurrent of unrest which could threaten to boil over. even though we haven't seen mass protests in the past few months, we could see a few protesters looking at the world cup. that's the key risk, especially with elections coming up in october. >> we've had disappointing economic performance since 2012. what does the government -- the highly fluctuating policy as well, part of that is due to u.s. policy, have they the ability to put in investments to raise savings rates? >> you hit the nail on the head. it's disappointing performance in recent years. it's due to a low investment rate, investment in brazil, 18% of gdp which is far, far too low for an economy at this stage of development. i'd secretary investment rates

need to rise to 25% of gdp to put the economy on a better long-term growth path. reforms to the pension system, benefit system which will be unpopular. so in the short to medium term, probably they're not going to do enough to get investment towards high levels. >> it would be helpful if brazil won the world cup, wouldn't it? it would be a big weekend there. >> it would be. it would be a big hangover. >> do you think they will. >> i think they have a chance but i don't think they will. i think the pressure will be too high. i think a south american team will win. >> uruguay? >> maybe uruguay, yes. >> senior analyst. that's a difficult place to start against england. some of the corporate stories, a u.s. appeals court

rejected bp's bid to overturn a previous ruling. in march, the court said businesses wouldn't have to prove they were directly harmedgy the gulf of mexico spill in order to collect settlement payments. geoff morrell said the company was disappointed and is going to consider its legal options. the london stock exchange may buy russell investments. this according to the financial times. the potential takeover would be the biggest in the group's history and the market's boldest push into the united states. although the newspaper sources said talks could still fall apart with any announcement weeks away. as i said, there's a bit of a buzz in the tech world today surrounding microsoft, the company is holding an event at 11:00 a.m. eastern where it's expected to unveil a new version of its surface tablet. opinion is divided over whether it will be smaller or bigger than the current model.

is it all about the size? there's speculation that the tablet could come with a new chip. the most recent generation have received mixed reviews. important product today. and chipotle wants to crack down on guns in its restaurants. seems like a good idea. the popular burrito chain is asking customers not to bring firearms into its eateries. this after advocates brought military-style rifles into one of its sites over the weekend. while many states allow people to carry licensed guns in some ways, other businesses exercise their right to ban firearms. certainly would make me feel more comfortable. we're asking is chipotle right? let us know your thoughts. you can get in touch with us, e-mail worldwide@cnbc.com,

tweet @cnbcwex or direct to me @rosswestgate. i prefer to eat my grill without smith and wesson next to it. that's a personal opinion. u.s. futures are suggesting -- well, yesterday we had a tick higher. suggests we'll get a tick lower at the open. the dow up 20 points, 0.1%. it's currently down 2. the dow is down 15, nasdaq down 4. still to come, credit suisse is the biggest bank to admit to a u.s. criminal charge. what else has the doj got in charge for european lenders?

this is "worldwide exchange." i'm ross westgate. here are the headlines. resignations not on the agenda. credit suisse ceo brady dugan standing firm. they plead guilty to criminal charges and pay a $2.5 billion fine. angry reaction from the chinese government to the american cyberspying probe. the defense ministry denies the allegations and says the u.s. should cancel the charges. and go pro wants to go public. the company behind miniature attachable cameras hopes the flotation will raise up to $100 million. will microsoft go big or small? rumors swirl as the tech giant

gears up to unveil what could be a new range of surface tablets with the importance split over the importance of the size. you're watching "worldwide exchange," bringing you business news from around the globe. if you're just joined us state side, welcome to cnbc's "worldwide exchange." u.s. futures indicating we're gehl a tick lower at the open. we'll get more in depth on that. first we kick off with the banking sector. credit suisse will pay a fine of $2.5 billion after pleading guilty to helping u.s. citizens evade taxes. it's the biggest bank to admit to a u.s. criminal charge in two decades. u.s. attorney general eric holder said the lender's illegal activity will have been pervasive. >> the bank concealed assets in

illegal, undeclared bank accounts. this conspiracy spanned decades. in the case of at least one wholly owned subsidiary, the practice of using shant mentaties. >> a man you've spoken to a lot of times. to be fair, he wasn't in charge of 100 years ago. >> more like ten years ago. he wasn't in charge then. that's why we're not seeing a charge against individuals at the bank. but of course huge, massive, very, very painful fine for credit suisse. $2.8 billion. >> what was the ubs fine? >> $780 million. >> same crime, right? >> similar crime. even though, it's quite interesting that you asked that.

ubs tax evasion's fraud was much larger than that of credit suisse. >> how do they justify the fact that the crime was less but the fine was three times more. >> two reasons. first of all, credit suisse isn't handing over klein account data to the u.s. they say that we can't do that. ubs did that. they handed over 4,450 client names to the u.s. and entered the so-called deferred prosecution agreement. credit suisse isn't doing that. many prosecutors in the u.s., according to a number of reports were actually frustrated with credit suisse's lack of cooperation. >> credit suisse hasn't handed over -- >> they're not doing that. >> they're not going to do it? >> absolutely. >> does that mean credit suisse clients are off the hook? >> i can't give legal advice here. >> i didn't mean it like that. they haven't handed over klein the details? >> that's true. >> as far as we know. >> second reason as to why this

fine is more onerous is the fact that in the last five years regulations picked up and the doj itself is under pressure from the senate subcommittee as being too lenient. that's why the doj is try trying to take a much tougher stance. bnp, we're still waiting for the settlement related to u.s. sanctions. that could be more than 3 billion euros. >> i better get my calculator out the way things are going. thanks for filling us in with that. >> jp morgan is holding its shareholder meeting later today. "the wall street journal" suggests diamond plans to stay at the bank for as many as five

more years. coming up on cnbc as well, our colleagues state side speak to chris flowers. in a rare interview since the financial crisis he'll talk about the u.s. mortgage market, the outlook for japan. that all starts at 7:00 eastern, 1300 central european time. just over two hours into the trading day in europe. equities are softer. about 0.5% for ftse. the xetra dax down a quarter as as the ftse mib, the italian market as well. a couple individual top stocks worth looking at in london today. investors hanging up on vodafone. stock down 4.5%. this is the first set of results since vodafone exited its verizon mistake. marks & spencer, british retailer seeing its shares down 3% today.

it's third straight profit decline announced this morning. the 3.6% drop was better than expected. as far as u.s. futures are concerned, we are indicated lower at the start this morning. the dow yesterday was up 20 points. it's currently called down by 12. the s&p yesterday was up 7 points. it's currently called lower by 2. the nasdaq up 0.9%. it is currently called lower by 4. joining us with his thoughts, brad mcmillan, chief investment officer of the commonwealth network. we saw for one that high-growth biotech stocks outper following the broader market. any significance in that? >> well, i think that the market is pricing back in growth coming back. in other words, we saw a serious worry in the first quarter when

growth came in much lower than expected, that maybe the growth stocks were not going to do it. you saw the pull back. with earnings season over, earnings actually up, growth is looking like a possibility again, especially with a very positive economic numbers we've seen in both employment and in factory utilization. >> we're thinking growth is coming back. why bond yields in the last week being down on the ten-year, 2.47%. >> that's the interesting question, because what i believe is, this is largely technical factors. we've seen he buying come in, foreign buyers stepping back into the market. speculation is it's chinese. we've seen u.s. pension funds come back in a big way. they're moving to immunize they've come back to almost fully funded status. now they want to go into bonds so they don't have to worry about it. they have tremendous technical factors supporting the market.

i think you're right. there is worry about the economy driving that. that doesn't seem to be the primary motivator at this point. >> in terms of data, we have chain store sales today and fed minutes out tomorrow. how does that all play in? >> everything we've heard from the fed says that you have a sustainable recovery, that they're going to commit it to the taper and we don't see any evidence. if they didn't back down during the first quarter, we're not going to see them back off. i don't expect to see too much news in the fed minutes. as far as consumer spending goes and consumer retail sales, we've seen personal consumption go up much more than expected. we've seen consumer inflation start to rise. we've seen wage growth although it's still disappointing, continue to tick up. i think we'll see positive surprises there. also due to the fact that we're getting some bounce-back from the weather effect. >> brad, stay there.

we'll come back a little bit later. get a cup of coffee, we'll be with you fairly shortly. on the agenda today, in the united states, we'll be looking at the retail side. key earnings include home depot, staples and tjx, the parent of tjmaxx. two fed presidents share their outlook on the economy this afternoon, at 12:30 eastern, philly fed president and then at 1:00 eastern, new york president william dudley. go pro wants to go public. but are investors falling out of love with the tech secretarier? we'll find out.

you're watching "worldwide exchange." a recap of the headlines. credit suisse agrees to pay $2.5 billion to the u.s. after pleading guilty to helping customers evade taxes. china describes the u.s. acquisitions of sign cyber spying as absurd. and doing nowhere. jamie diamond says he wa-- jami dimon says he wants to stay five more years.

and go pro, they're popular with extreme athletes. josh lipton filed this report. >> it's one of the most anticipated tech ipos this year. go pro finally filing its s-1 and giving investors their first look into the financials of this company. in terms of revenue, looking through the filing, in 2011, revenue of 234 million in 2012, revenue jumped to 526 million. in 2013, nearly doubling to $985 million. founder nick woodman who "forbes" lists as a billionaire, says revenue doubled every year since the camera's debut in 2004. go pro is the action camera market. it dominates about 54% of global market share, according to idc. that's a market that's growing by leaps and bounds. it jumped 70% last year. but woodman wants to take this company in a new direction. he doesn't just want to be a cameramaker.

he believes go pro can be a media company, leveraging short-term content and use it as a media brand. go pro has deals with microsoft, for example, there's a go pro channel on the xbox 360. there's another one coming to xbox 1. they think it's a real possibility that go pro could establish channels for cable tv, satellite operators or the likes of netflix and amazon. investors can make an educated decision about whether this is a company they want to commit capital. josh lipton, cnbc. >> great product, you have to admit. alibaba could kick off its listing in the first week of august. the timing would give the firm enough time to respond to questions that the s.e.c. may have regarding its business. the s.e.c. is currently reviewing alibaba's f-1 filing. still with us, brad mcmillan. brad, you going to be interested

in the alibaba ipo? do you want a piece of that if it happens? >> i would love that. that would be the great product, i think, that's out there. they have a track record. they have revenue. i think this is a great opportunity. >> because it gives you a good way to play china? and they will compete back in the states as well, aren't they? >> well, they're dominant in the chinese market. this is something, they have a product, they're a multibillion dollar company. this is something that gives a u.s. investor a relatively transparent way to access the growth areas of china. it's such a vote of confidence. >> sorry, i interrupted you without necessarily meaning to stop your flow. we've seen a lot of tech ipos come in at very rich valuations, which got us all nervous, of course, in the last few months. are we going to see more realistic pricing in the future? this is a concern.

are you interested in the ipo market for techs? do you think it will be too rich? >> well, i think alibaba is a special case, but it does scare the heck out of me. i'm old enough to remember the 2000s. i actually ran a tech startup during the 2000s. i've seen this movie before. that does worry me. i think alibaba is a special case. at the same time, i think this is part of the larger growth story. everyone saying the trees are growing to the sky. now they're saying maybe not. i think that will reduce valuations going forward. i think that's a good thing. >> okay. always good to see you this morning. thanks for joining us. have a good day, brad mcmillan from commonwealth financial network. >> thank you. there's another buzz surrounding microsoft. the company is holding an event at 11:00 a.m. eastern where it's expected to unveil a new version of its surface tablet, opinions divided over whether it will be smaller or bigger than the current model.

there's also speculation why not have both. the tablet could come with a new chip, the most recent generation of surface products have received mixed reviews. we'll be getting into this as well in around 20 minutes or so. we've also all probably complained about getting annoying telemarketing calls at least once. now, the s.e.c. is fining sprint $7.5 million in the largest do not call settlement to date. the agreement follows an earlier one made three years ago in which they approached 400,000 for similar complaints. the company blames the issues on technical and inadvertent human errors. they are vowing to improve their oversight and compliance. now, chipotle wants to crack down on guns in its restaurants. the popular burrito chain is asking customers not to bring firearms into its eateries. this is after it says gun rights advocates brought military style assault rifles into one of its texas sites over the weekend.

chipotle says it has traditional complied with local laws regarding open and concealed firearms. what we want to know, is chipotle right? should businesses overrule local laws when it comes to firearms? it's ridiculous when a restaurant even has to tell people to not bring guns. you might be right. josh tweeted saying have the right to do so doesn't make it right. having the right to have a gun or having the right to ban guns? restaurants? not quite sure which one he's referring to. anyway, clarify that for us, if you will. keep sending them in, please. e-mail, worldwide@cnbc.com, tweet @cnbcwex or direct to me, @rosswestgate. tensions ramp up between the world's two biggest economies as the u.s. charges chinese military officers with cyber

spying. we'll be in beijing, next.

we found a mixed bag of retail earnings this year. courtney reagan has been taking a look at what's behind some of the weaker numbers from urban outfitters. >> it's a big week for retail earnings.

some are strong while others like urban outfitters are disappoint. they report a profit drop of 20% for its first quarter. the retailers' earnings coming in a penny shy of analyst estimates on revenue of $686 million. same-store sales at its name sake chain fell 12%. the company says while the two smaller chains continue to post record sales and profits, performance at urban outfitters is disappointing. susan anderson had low expectations for the specialty retailer going into the earnings release, predicting the weakness at urban outfitter stores will continue. anderson while she regards urban as a strong omni channel leader, she thinks the stock will trade sideways in 2014. urban outfitters faces stiff

competition from h&m, zahra, forever 21 and other rivals. courtney regan with a look at urban outfitters. u.s. futures this morning, after the gains we saw yesterday, we could dip lower this morning. the s&p 500 ticked higher by 0.4%. it's currently about a point below fair value. the nasdaq is a point below fair value. that's a flat start forecast right now by u.s. futures. the chinese government reacted angrily after the u.s. indicted and named five chinese military officers for cyberspying. the chinese defense ministry says the government and military have never engaged in spying on businesses saying the accusations have seriously damaged trust between the two countries. state media reports the u.s. ambassador to china was summoned and warned that retaliatory

action would be taken. cnbc's eunice yoon is in beijing with the latest from there. eunice, we were speaking about this earlier. when something like this happens, there has to be an official we are outraged line. one wonders what it does to the real relations underneath. >> well, i think at this point it's having a damaging effect on the relationship between the u.s. and china. longer term, of course, these two are tied at the hip because their economic relationship is so strong. so you would assume that the two sides are going to try to work through these issues. but we definitely are sensing the tension between both china and the united states. of course the reason why china is reacting so strongly and coming out with such statements whereby they're saying they'll retaliate if the u.s. tens with this -- along this line of thinking is because the u.s.

justice department had accused five of its military officers with a very specific accusations of cybertheft. now, they listed the names, the ali aliases, the photos of these people and also talked about how, you know, what exactly they did carry out, how they targeted specific american companies, including westinghouse and alcoa and that is what was so surprising about this particular case. we had heard a lot about cyberspying in the past but because they were just so specific about it, and the fact that american companies were willing to come forward and put their names out there, really leads people, including myself, to believe that you're sensing that there is a lot of frustration among american companies and in fact, many in the business community about these types of actions. >> yes. i'm sure there will be more to come on this.

for now from beijing, eunice, thanks very much. good to see you. eunice yoon. vladimir putin is in china, in shanghai. he's expected to close a 30-year gas deal with china today. analyst estimates estimate the deal will be worth around $400 billion. elsewhere, thailand's army declared martial law. the army chief says the decision was made to keep the peace but it's not a coup. the acting prime minister has refused to resign. many protesters say he has no legal standing to be in power in the first place. thailand's been stuck in political limbo since may 7th. that's when president yingluck shinawatra, nine of her cabinet members were dismissed. we're getting reports that a

russian passenger train have collided near moscow. once again, they're reporting two trains have clashed near moscow. we'll have more on that. also still to come, rumors surface, could microsoft be set to unveil a new version of its tablet later today? we'll preview what might happen, coming up. [ female announcer ] there's a gap out there. that's keeping you from the healthcare you deserve. at humana, we believe if healthcare changes, if it becomes simpler... if frustration and paperwork decrease... if grandparents get to live at home instead of in a home...

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these are the headlines from around the world on cnbc's "worldwide exchange." resignation not on the agenda. credit suisse ceo brady dugan standing firm as the swiss bank settles a huge u.s. tax probe. they've pleaded guilty to criminal charges and paid fines. angry action from the chinese government to the american cyber spying probe. the defense ministry denies the allegation and says the u.s. should cancel the charges. go pro wants to go public. the company behind miniature attachable cameras hopes the flotation will raise up to $100 million. will microsoft go big or small? rumors swirl as they gear up to unveil a new version of the

surface tablet, while opinions split about the size. you're watching "worldwide exchange," bringing you business news from around the globe. very good morning to you. we'll be talking about weather size matters with microsoft surface in just a few moment's time. right now, u.s. futures are suggesting a fairly flat start this morning after gains yesterday. for once, the nasdaq outperforming the rest of the indices. currently up 0.9% is where we finished. right now futures indicating we're just 2 points below fair value. the dow at the moment is 6 points below fair value. europe be equities have been softer during the session today. ftse 100, add inflation numbers today that ticked up for the first time since 201. 1.8% was the annual rate of

inflation we got coming in today. the xetra dax is off 0.2. the ftse off yesterday and the financials is fairly flat. so here we are. this tuesday in the middle of the trading week, what are investors supposed to do? here's a recap of some of the thoughts we've had on the channel today. >> you've had such a resounding victory that it does give india a chance to reform in a way that things were broken up in the past. you have a central bank that continues to move toward inflation targeting. if they can keep that on track could have phenomenal benefits over the course of a decade in terms of reforms going on there. >> i think the problem with vodafone was the focus was on the verizon state. when they could get past that, you're right, to say that's still very much the focus investors have in their minds as

to how it fits in their portfolio. it's not an asset that's exciting for returns or a growth story. >> this crude oil is not being repossessed. it's not exported in crude oil. it will bring about arbitrage on the markets. >> thoughts of guests already we've had on the channel. there's a buzz in the tech world of microsoft. the company is holding an event at 11:00 eastern, expected to unveil a new version of its surface tablet. opinions divided over whether the screen will be big or small. there's some techlation it could come with a new chip. the most recent generation of surface products have received mixed reviews. joining us with his thoughts, john biggs, editor at tech crunch. what is going to be the most

important thing about this surface product? >> well, the most important thing it's beginning to be a change. the first products originally sold well. i don't think they really didn't fly off the shelves. it's really going to be interesting to see where microsoft goes with this new version. it's important for them. this is their flagship product. this shows how windows 8 is supposed to look. >> you say it's good hardware, you've been a fan but it never made it into the daily use. why not? >> i think the trick is, it's not quite a laptop, not quite a tablet. a lot of people didn't know how to fit it into their work schedules, their work systems. it's an exciting product. when it first came out everybody was real excited but just even in my own personal use, tried it a little bit. the hinge on that keyboard that you see there doesn't hold up. if you're on a plane it's flopping all over the place. it's frustrating. the ideal for them would be to

make a very, very powerful microsoft branded laptop. which would be very cool. >> do you think that's what this next version will be or not? >> that's our hope. one of our microsoft specific analysts is talking about a little bit bigger screen. you have a nice screen, your touch experience is abetter and keyboarding experience is a lot better. it's shaped about as large as a standard ipad. if you look at the two, it's obviously apples and oranges but a lot of customers saw it as the same thing. if they make it a little bigger, easier to use, they could get people into windows 8. >> that would be a big deal. just stay there. we'll move on from microsoft. we have the mini video camera go pro has filed to go public. this is the company that makes the small and durable cameras which sell for $700, very popular with extreme athletes.

go perfect says it hopes to raise up to 100 million for the ipo. the firm didn't say how much shares it hoped to sell or for what price. john, just from a tech perspective, looking at pictures here, people love the shots that these people get with these cameras. what do you make of the business? >> i think it's a great business. it's an interesting business. it's one of the last cameramakers, stand-alone cameramakerses standing. you can't strap your iphone to your head safely to get shots like these. these things have taken all sorts of abuse, they've gone under water, taken picks of skydiving and sflying out of crazy airplanes near the stratosphere. it's amazing, hardened technology that a lot of these extreme sports guys are enjoying. is it the best camera in the world? probably not. but it's interesting. >> people want to share content and share the best content they

can. these guys help provide that. >> absolutely. >> it's a lot of fun. you can use these in professional settings or just skiing by yourself. it's real interesting that they are going ipo. it's an important move for them to expand the business a little bit. >> will it ever get to a point where they integrate their cameras into somebody else's laptop or ipad or phone? do you think that's going to happen? >> i don't think that's the point here. i think the value of these things, they're so small, you can pack them tightly inside a plastic case and kick them around all day long and they'll still work. they're sort of the takes a licking, keeps on ticking camera. >> did you make that up, takes a licking, keeps on kicking. >> i heard it somewhere. >> that's a good one to come out with. we like that. it's not yet 6:00 where you are. thanks for that. john biggs joining us from tech

crunch. >> thanks a lot. >> good phrase. i'm keeping that one, too. credit suisse is the largest bank to admit to a u.s. criminal charge in two decades. what else has the doj got in store for european lenders? we'll get into it when we come back.

you're watching "worldwide

exchange." recap of the headlines. credit suisse agrees to pay $2.5 billion to the u.s. for evading taxes. china describes the charges and jamie dimon wants to stay at jpmorgan for at least another five years. resignation has never been a consideration, a defiant brady dugan is standing his ground after credit suisse has been fined $2.5 billion, this after pleading guilty to helping u.s. citizens evade taxes. we are joined from cnbc hq with more on the story. considerably more than ubs got fined, seema. >> right. they are imposing the largest penalty, this after a lengthy

criminal investigation into allegations the swiss bank recruited u.s. clients to open swiss accounts, hem them conceal accounts from the irs and enabled misconduct by employees. credit suisse agreed to pay about $.6 billi $2.6 billion to government and regulators. u.s. attorney eric holder said the conspiracy spanned decades. >> the bank went to elaborate lengths to shield them from their criminal actions. they destroyed bank records and concealed transactions involving undeclared accounts by limiting withdrawal amounts and using offshore credits and debit cards to repatriate funds. jpmorgan, earlier this month, glass lewis recommended that shareholders vote down ceo

jamie dimon's pay raise. he plans to stay at the bank for as many as five more years. ross? >> yes. good for him. >> yes. doesn't look like he's going anywhere. >> no. i'm sure he'll be rewarded for it as well. seema, good to see you. thanks very much. i didn't get purply enough today. never mind. you look good. thank you. thanks, seema, have a good day. still to come in the u.s., the "squawk" team will be speaking exclusively to chris flowers in a rare interview since the financial crisis. they'll be talking about the u.s. mortgage market, the european bank stress test and the bank of japan. that all kicks off at 7:00 a.m. eastern. thailand's army has declared martial law. the army chief says the decision was made to keep the peace but it is not a coup. the acting prime minister though refused to resign. many protesters say he has no

legal standing to be in power in the first place. thailand has been stuck in political limbo since may 7th. that's when the then prime minister, yingluck shinawatra and nine of her ministers were dismissed after a court found them guilty of abuse of power. the chinese government reacted angrily after the united states indicted and named five chinese military officers for siper spying. the chinese military says they never engaged in the accusations. staid media reports the u.s. ambassador to china was summoned and warned that retaliatory action will be taken. china's urged the u.s. to drop the charges. at the same time, russian president vladimir putin is in shanghai and is expected to close a 30-year gas deal with china. the agreement could be worth around $400 billion.

and it's the most expensive divorce in the world. russian billionaire has been ordered to pay his ex-wife $4.5 billion to settle. $4.5 billion to settle a six-year divorce battle. the ruling has been passed by a swiss court enit means that dmitry rybolovlev will lose half of his wealth. he's owner of the football team monaco and he was previously ranked as the 78th richest person in the world by "forbes." i have news concerning astrazeneca and pfizer. astrazeneca shareholders has called on the board to recommend their engagement with pfizer over the bid. their final offer was 55 pounds ai -- a stock.

schroeder saying, can you go back and talk to them? whether that happens or not retains to be seen. still to come on the show, will the slowing housing market have hurt home depot? we'll preview the retailer's first quarter numbers. they're due ahead of the opening today. y god! look. you need to see this. show him the curve. ♪ do you know what this means? the greater the curvature, the bigger the difference. [sci-fi tractor beam sound] ...sucked me right in... it's beautiful. gotta admit one thing... ...can't beat the view. ♪ introducing the world's first curved ultra high definition television from samsung.

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ing ag hsbc and jpmorgan have had charges filed against them for rigging interest rates. settle one allegation and another one comes up. keep our eyes on that. european equities meanwhile are lower. the xetra dax is off a quarter, the pftse mib is fairly flat. key earnings out of the retail front before the bell from home depot, staples and tjx. philly fed president will speak today and at 1:00 eastern, william dudley, new york president will speak. futures indicating a flat to lower open today. the nasdaq off to a fairly solid move up 0.9% is currently called

lower by around 5 points. more earnings in europe today, vodafone one of the biggest decliners. the first time we've seen vodafone without verizon looks like. the world's second biggest mobile operator reported today 1.9% fall in its full-year revenue, which was above analyst expectations. european competition has hurt the operator. it was boosted, of course, by that sale of the stake in verizon. they'll have to make quite a bit of investment to generate future growth returns. meanwhile, it's been a mixed bag of retail earnings so far this quarter. courtney reagan has been looking at weak numbers from urban outfitters. >> well, it's a big week for retail earnings. some are strong while others like urban outfitters are disappoint pg this he report a

profit drop of 20% for its first quarter. the retailers' earnings of 26 cents per share coming in a penny shy of analyst estimates on revenues of $686 million. that metric is slightly better than wall street's expectations. same-store sales at its name sake chain fell 12%. anthropology grew 12% and u urban's free people stores raise 25%. susan anderson had low expectations for the specialty retailer going into the earnings release, predicting the weakness at urban outfitter stores will continue. anderson says in fact while she regards urban as a strong omni channel leader, she thinks the stock will trade sideways. urban outfitters faces stiff competition.

shares of urban outfitters moving lower in after hours in response to the earnings release. back to you. >> courtney reagan with that update. joining us founder of sw retail advise. this quick word about urban outfitters, how do they turn things around. >> their comps were down 1 %. they start the focusing more on the teen consumer. most interesting, last quarter, the ceo said on the call, he basically brushed off the effect of fast fashion which i just couldn't believe. >> it's interesting. there is a distinction between normal fashion. i now assume if you're not fast fashion, you don't survive. >> that's true. >> everybody needs to be fast fashion. >> it's true. abercrombie to all the american chains are saying that's the direction they're trying to move in. it's not such an easy thing to do overnight. >> it took a long time for zahra to be zahra. >> very long time.

h&m is just really getting started in the states as is zahra. it's only going to get worse in the states. >> we'll hear from home depot, staples and tjx. they report soon. the housing market is everything -- well, not everything but a large portion for home depot. what do you think we need to focus on? >> with home depot, you have to look at the two big guys in the group, lowe's versus home depot. their comp spread against lowe's has been almost a 6 percentage point difference. they are able to capitalize on their pro business, higher ticket. they have a bigger exposure. the $900 and above tickets are working there. they're executing. housing slowdown, no housing slowdown, they're going to be the outperformer. >> they'll still taking market. >> their operating margins continue to go up while lowe's remain stuck.

>> tjx is your first play in the space. >> yes. that's where people are shopping, that's where they're migrating. think about the retail cancellations going on in the last six months as numbers are pretty bad in retail, guess who's getting all the good stock? it's the off-price channel. tk, which is here in the uk is really getting started. they're accelerating their rollout. i think the consumer here is really just getting used to it and the brands are really starting to roll in. that's really my first pick. >> they're getting online -- >> in the states they just got online. they've been online in europe. which is interesting they're sort of ahead here. a couple of catalysts there. you saw nordstroms, the rack, put up phenomenal comps in their off-price channel. >> online is a problem for staples. >> it's a big problem. it's a problem that's not going away. almost half their business is online. it's not just that. if you think about the office category, we're just using less

things as we go virtual. so what's the answer for them? it's a race to close as many stores as quickly as possible. that's the same with their competition, the recently merged office depot/office max combination. it's about cost cutting and closing stores. >> just not in the right space. good to see you, stacey. >> you, too. >> stacey widlitz. the eu has filed formal charges against the three banks for cartel to rig rates. it says they colluded to distort pricing of euro interest rates and it follows a fine given to six other banks, including citi and deutsche bank for similar offenses. this one also called into the net. that hsbc stock down at the session low, off around 1.3%.

credit ag ricole is down 0.7%. it should be a german flag, not a japanese one for jpmorgan. we'll keep our eyes on that developing story. meanwhile, a quick recap of where the u.s. futures stand today. we'll be looking ahead to the retailer reports. the dow is 12 points below fair value, the s&p at the moment is 2 points off fair value and the nasdaq is really just 3 points off fair value after a move higher yesterday. that is it for today's edition of "worldwide exchange." coming up next, "squawk box," the count down to the opening market state side. whatever happens, you hope it's a profitable one for you. bye for now.

good morning and welcome to "squawk box." credit suisse pleads guilty to tax evasion charges, will pay more than $2 billion in fines and the ceo says he's staying put. china reacting to u.s. charges of cyber spying confronting the u.s. ambassador about the accusations. and go pro is going ipo. i think i know what those are. what is, a camera. tuesday, may 20th, 2014 and "squawk box" begins right now. good morning, everybody. welcome to "squawk box" here on cnbc. i'm becky quick along with joe kernen and andrew ross sorkin. in our headlines this morning, credit suisse is the largest bank to plead guilty to a u.s.

criminal charge in 20 years. the u.s. justice department filed a criminal complaint against the swiss bank yesterday alleging that the firm conspired to help clients evade taxes. credit suisse has admitted wrongdoing and will pay fines and restitution topping 2.5%. u.s. attorney general eric holder speaking at a news conference yesterday. >> the bank went to elaborate lengths to shield itself, its employees and the tax cheats that it served for accountability for their actions. they destroyed bank records and concealed transactions involving undeclared accounts by limiting withdrawal amounts and using offshore credits and debit cards to repatriate funds. >> on a conference call with analysts and reporters, credit suisse ceo brady